Speaking late last week in Washington Federal Reserve Board Chairman Ben Bernanke hinted that rate hikes may be on the way. Bernanke said, “When the economic outlook has improved sufficiently, we will be prepared to tighten the stance of monetary policy and eventually return our balance sheet to a more normal configuration.”
Not exactly a bold statement but a necessary one as it became imperative to say something supportive of the dollar after last week’s weakness. It has not lasted as the dollar made a new low for the move today.
